NYMT - Wall Street picks up pace of issuing private-label mortgage bonds - WSJ

Wall Street investment firms have issued $42B of bonds in the private-label mortgage market in Q2, the most since the onset of the pandemic and almost the most for any quarter since the Great Financial Crisis, the Wall Street Journal reports, citing data from Inside Mortgage Finance. These relatively high-yielding securities are an alternative to the scarce yield environment in government-backed mortgage issuers like Fannie Mae (OTCQB:FNMA -1.9%) and Freddie Mac (OTCQB:FMCC -1.4%).  The GSEs can command a lower rate as they come with a federal guaranty that bondholders will get paid. In the "search for yield" environment, investment firms like Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), and JPMorgan Chase (NYSE:JPM), as well as a range of banks and real-estate firms, are taking advantage of historically low borrowing costs by pooling private-label mortgage loans and selling them to investors. Assets that are backed by these loans consist of investment properties, super-expensive

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Wall Street picks up pace of issuing private-label mortgage bonds - WSJ